There are many roles associated with strata-titled property which can often cause confusion for owners (who collectively form the Strata Company). When issues arise or action is required in your strata scheme, do you know who best to contact and who’s responsible for what?
Strata Company
A Strata Company is the group of owners of a strata-titled property. When you purchase a lot on a strata-titled property, you join the Strata Company, giving you equal voting rights alongside fellow strata owners. As a member of the Strata Company you don’t have regular duties as such, however you are required to pay your levies and comply with the scheme’s by-laws. In addition, you have the right to vote and contribute to decision making, stand for a position on your committee and generally be heard.
As an owner, you also have a share of unlimited liability for anything that goes wrong within the scheme, which is why strata insurance is compulsory in every state and territory.
Council of the Strata Company
Elected from the members of the strata company, the Council of the Strata Company is a group of three to seven lot owners appointed at the Annual General Meeting (AGM) who perform the functions of the Strata Company. These Councilors ensure the complex runs smoothly for all residents and owners until the next AGM by providing governance, setting goals and making decisions on all matters for the Strata Company, including the control, maintenance and repair of common property. Common duties include:
- Appointing and supervising the Strata Manager
- Enforcing and making by-laws
- Managing and maintaining the common property for all owners
- Ensuring the Strata Company is sufficiently funded and insured
- Maintaining usual business records and convening required General Meetings
Councilors must act honestly, with loyalty and in good faith. As Councilors work with the Strata Manager and other lot owners, Councilors must conduct themselves with respect and integrity and not use their position on the Council improperly or for their own or another’s personal gain.
Chairperson of the Council of the Strata Company
To foster a positive working relationship between the Council of the Strata Company and the Strata Manager, we recommend nominating a Chairperson who acts as a liaison between the Strata Manager and other lot owners. The major benefit of nominating a Chairperson is it allows clear and effective communication, supporting the smooth running of the complex. The specific duties of a Chairperson include:
- Receive and respond to email correspondence from the Strata Manager
- Distribute all correspondence to Council of the Strata Company members
- Collate votes cast by Council of the Strata Company members
- Instruct Strata Manager to act in accordance with decisions made by the Council of the Strata Company
Site Contact of the Council
In addition to the Chairperson, we recommend nominating another person to be the Site Contact of the Council. They are responsible for meeting with any contractors who are onsite and ensure that the maintenance scopes of work are understood by contractors and completed to a satisfactory standard.
Strata Manager
A Strata Manager is employed by and can only take instructions from the Council of the Strata Company. The Strata Managers role varies based on the size and style of the Scheme, as well as the rules and limitations the Council of the Strata Company have dictated in their contact. It is important to note that they have no authority to act on their own, unless given to them by the Council of the Strata Company. Strata Managers are primarily responsible for assisting and advising the Council of the Strata Company to ensure compliance with the Strata Titles Act 1985, a Strata Manager can also assist with:
- Preparing the draft budget
- Managing Strata Company records (non-financial and financial accounts and statements)
- Preparing and managing insurance claims
- Attending to the day-to-day running of the scheme, includes maintenance and disputes
- Preparing and managing insurance claims
- Issuing and receipting levies into the Strata Company bank account
- Advising on relevant strata legislation where required
- Attending and/or chairing general meetings and preparing draft notices and agendas
Other roles in a Strata Company
Less common roles that you may come across at your Strata Scheme include:
- Caretaker or Building Manager
- Property Manager
Want to know more about the different roles or responsibilities in a Strata Company? Give us a call on 08 9362 1166 or email us at info@esmstrata.com.au. You can also learn more about strata by visiting the News and Resources page on our website.
